On the occasion of the 20th anniversary of the establishment of "618" Jingdong this year, Jingdong officially proposed the "35711" dream for the next two decades. Next, let's look at the current situation of Jingdong after the dream.。

After the Hong Kong stock market on Wednesday, August 16, Chinese e-commerce giant Jingdong Group announced its second quarter and interim results for 2023.。Performance data show that Jingdong's total revenue in the second quarter increased by 7.6% to 2,879.3.1 billion yuan (RMB, the same below); second quarter operating profit was 82..700 million yuan, compared with 37 in the same period last year..5.8 billion yuan; net profit attributable to the parent was 6.5.8.1 billion yuan, compared with 43 in the same period last year..7.6 billion yuan。

By segment, JD Retail Q2 revenue reached 2,532.800 million yuan, up 4.85%, up 19% month-on-month; JD Logistics revenue 410.3.3 billion yuan, up 31.2%; Dada income 28.1.1 billion yuan, up 23.2%, adjusted net profit of $8.4 million, the first profit since listing in 2020;.1.6 billion yuan, up from 62 in the same period last year..6.5 billion yuan declined.。

It can be seen that, thanks to the "618" shopping promotion boost, Jingdong Group Q2 performance overall to the good。

For the second quarter results, Jingdong's new CEO Xu Ran said in the report: "In the second quarter, thanks to the continuous optimization of the business structure, as well as leading supply chain capabilities, Jingdong to the solid financial and operating performance.。We are also pleased to see that the number of third-party merchants more than doubled in the second quarter and reached an all-time high.。"

Xu Ran also said: "In the second quarter, Jingdong Group achieved better-than-expected performance in terms of revenue and profitability.。In the retail business, driven by JD's supply chain advantages and high-quality service capabilities, core categories such as home appliances and 3C continue to gain market share, while the big business super category is steadily adjusting as expected to establish a healthier business model.。In the future, we will further optimize our business model and maintain investment to help Jingdong Group grow sustainably.。"

          

Continue to expand investment Jingdong progress？

         

From the point of view of business progress, first of all, the core business of Jingdong retail, the announcement shows that during the 618 period of Jingdong company, home appliances fully upgraded to trade-in services, the introduction of attractive discounts, free door-to-door, demolition and handling of the three free services, as well as delivery, installation, demolition, clearance of the integration of services and other initiatives.。

And during Jingdong 618, the company opened Jingdong MALL in Dongguan and Kunming, and also opened 13 city-level home appliance and electronics flagship stores in 11 cities, including Chengdu, Tangshan, Suzhou and Nanjing, and opened 724 Jingdong home appliance stores nationwide.。

In addition, during the second quarter, Italian luxury fashion brands Bottega Veneta, Missoni, French luxury skincare brand Sisley, L'Oreal Group's scientific skincare brand Xiulico and other beauty brands opened official flagship stores in Jingdong.。Other brands that joined JD in the quarter include Maison Margiela Fragrances, Byredo, Farmacy, Aesop and others。

Jingdong health aspects。In the second quarter, JD Health and Novartis Innovation Bio, Novo Nordisk and other global pharmaceutical companies deepened cooperation, by further enhancing the cold chain and offline DTP (direct to patients) full channel performance capacity, continue to build its specialty new drug online retail channels, to provide better accessibility for patients in need.。

In April, JD launched one of the first dermatology online medical centers in China, with more than 40 top dermatology experts and more than 3,000 registered dermatologists from China's top three hospitals.。JD Health's strategic service product JD Family Doctor completed a product upgrade in June this year and launched the "Year-round Care for the Elderly" service, which reportedly equips every elderly user with a dedicated health care provider to monitor and manage their health throughout the year and provide customized health management solutions.。

Jingdong Logistics。In April this year, Jingdong Airlines opened a full cargo route from Beijing Daxing to Shenzhen through Jingdong Airlines, after which Jingdong Airlines will be able to provide reliable next-morning delivery services in key cities in the Beijing-Tianjin-Hebei and Pearl River Delta regions.。In June, Jingdong Logistics Kunshan Asia No.1 Smart Industrial Park ("Kunshan Asia No.1") Phase II was officially put into operation。

The report also mentioned that during the Jingdong 618 promotion this year, the sorting capacity of Kunshan Asia One increased to over 4.5 million pieces per day.。As of this report, JD Logistics operates more than 1,600 warehouses.。Including the warehouse area managed through the open warehouse platform, the total construction area of JD Logistics warehousing network exceeds 32 million square meters.。

Dada aspect。During Jingdong 618, the number of Jingdong's home-to-home cooperative entity stores increased by 80% year-on-year, and the total turnover of home appliances, computers, beauty, sports outdoor, wine and other categories increased by more than three digits, continuously enriching the platform supply.。In April this year, millet 13 Ultra image flagship new machine officially launched, Jingdong home as an instant retail debut platform, to bring consumers spot hours up to the convenient purchase experience。At the same time, more than 2,000 county-level city consumers experienced Jingdong's home-to-home "hour-to-hour" service during Jingdong 618.。

It is worth noting that, in order to implement the "low-cost strategy" proposed at the end of last year, Jingdong in the past six months to cancel the self-management and POP (third-party merchants) sector separation, traffic distribution also gradually canceled the tilt of self-management goods, in order to encourage a large number of third-party merchants to settle in, enhance the richness of the platform's goods, and provide more relatively low-cost goods。In the second quarter of the financial report, Jingdong Group Chief Financial Officer Shan Yi mentioned that the future goal is to allow third-party merchants to contribute 60% of the transaction volume to Jingdong.。

         

Short-term growth encounters a jump Subsequent KPIs return to GMV, profit and cash flow

         

On the financial indicators and subsequent development status, Jingdong executives said in the earnings call, the mall sector in the second quarter is still facing the adjustment of business and commodity structure, the slow return of consumption after the end of the epidemic, as well as the high inventory during the epidemic and other difficulties, so the short-term growth rate encountered some challenges.。

However, the company believes that meeting the diversified needs of different users through a rich supply of merchants and goods will be an important growth driver for the continued improvement of Jingdong's revenue and profits.。

The following are the key issues and executive responses to the call:

Against the backdrop of macro and business adjustments, what are management's expectations for Mall's growth in the second half of the year？What KPIs Will Be Concerned About？

First, tens of billions of subsidies on the frequency of shopping users, cross-category shopping has a positive drive, while the activation of new users, especially low-frequency users have a relatively large pull-up effect.。

Second, since the beginning of the year, we have simplified the process of merchants entering, and then we have also increased our support for merchants, including reducing operating costs, providing more operating tools, and clearer operating rules.。Q2 The number of merchants achieved more than triple-digit growth year-on-year, meeting the diversified needs of different users through a rich supply of merchants and goods, which is an important growth driver for our revenue and profit to continue to improve.。

Third, while improving supply chain capabilities and promoting low-cost mindset, we also provide excellent services to consumers, which is our core strength.。This is evidenced by the continued acquisition of market share in the dominant category, as well as the supply chain capabilities that have helped us continue to improve our performance margins.。The most important KPI will return to GMV, profit and cash flow.。

There is a lot of uncertainty in the macro and industry environment, but we see the health of our business improving, and then we will firmly execute our long-term strategy, and then we are confident that our core business will maintain solid growth momentum.。

Strategic planning for the growth of the number of platform merchants？

There are three major links in specific businesses and category-specific measures.。The first entry, in the merchant entry side, we will increase our efforts to attract merchants, and then lower the brand entry threshold, and then at the same time we will greatly simplify our entry and distribution process, to reduce the fixed cost of business expenses.。

In terms of operation, we will promote fair competition among all entities on the platform, including self-management and third-party, as well as competition among third-party merchants, the most important thing is to clarify the value proposition of our platform, and apply it on the traffic side, and at the same time carry out effective publicity to merchants, and then create a clear growth path for merchants on the Jingdong platform.。

In the tool segment, we will continue to optimize the merchant's operating tools, and then provide better data support, and then the merchant to improve operational capabilities, and then operational efficiency and profitability.。

After six months of adjustment, which aspects have achieved expectations and which need further improvement?？

Active price adjustment strategy and brand ecological construction have made some progress.。The effect of the promotion grew faster than expected, proving the attractiveness of the low-cost strategy, but it will take a longer period of time to gradually change the user's mind.。

In terms of the prosperity of the platform's merchant ecosystem, it takes time to accumulate, and the traffic distribution mechanism and rules also need to be adjusted gradually.。

What is the focus of new business in the future？

Instant retail, including the recently upgraded hourly business, is one of our most important strategies for the new retail format, while the innovative retail business, including the integration of some pre-warehouse and other businesses, is more to promote the supply chain side of the collaboration, in fact, these businesses are basically still in the pilot stage, more in the exploration of the model, supply chain collaboration needs to be promoted city by city, the overall investment can be controlled, will not affect the annual profit or。